Under AMF’s vision, Mexico’s railways become the backbone of resilient industrial growth
As vehicle production and exports surge, Mexico’s rail network is working to expand capacity, modernise infrastructure and strengthen cross-border links – with the Mexican Railroad Association (AMF) leading efforts to turn rail into a strategic pillar of automotive competitiveness.
Mtra. Vianey De la Mora García, CEO of the Mexican Railroad Association (AMF)
Source: AMF
Mexico’s automotive industry has grown
about 30% in five years, producing nearly 4 million vehicles in 2024, with another
2.7% rise expected in 2025. That growth, together with higher imports and
stronger domestic sales, is exposing capacity limits across road and port
networks and driving OEMs to re-evaluate how they move freight.
With the sector under pressure to move vehicles and parts
faster and further, Mtra. Vianey De la Mora García, CEO of the Mexican
Railroad Association (AMF), tells Automotive Logistics
ahead of the 2025 Automotive Logistics & Supply Chain Mexico conference
that rail is not only seen “as a transporter of goods, but as a strategic
partner in industrial competitiveness.”
“Rail connects suppliers, assembly plants and export
terminals with efficiency and scale that no other mode can match,” De la Mora
says, adding that its role as “the backbone of cross-border logistics” will
only grow as production in Mexico expands.
Mexico is in what De la Mora calls a “historic phase of
investment” in rail, as the country aims to modernise key corridors linking
major ports and the US border. Projects underway include upgrades to lines from
the Bajío region – “the heart of Mexico’s automotive production,”
De la Mora describes – to major Pacific and Gulf ports (Veracruz,
Manzanillo and Lázaro Cárdenas), as well as the expansion of
cross-border rail routes through Nuevo Laredo and Coahuila.
“These investments are increasing both capacity and
operational reliability, reducing congestion and transit times for automotive
parts and finished vehicles, and strengthening Mexico’s role as a competitive
and connected logistics hub in North America,” De la Mora explains.
For example, port expansion at Veracruz – connected
to rail by both FerroSur and Canadian Pacific Kansas City (CPKC) – has raised
static storage capacity to approximately 53,000 vehicles, a roughly 56%
increase since 2019. Yet port throughout are only as strong as its
inland transport links. In practice, that means continued investment in rail
infrastructure is critical for Mexico’s ports to fully leverage this growth.
De la Mora stresses that investment in rail infrastructure
must be matched by spending on assets and technology. Mexican rail operators
are adding a new fleet of autoracks and intermodal equipment, and introducing
digital fleet-management systems to improve utilisation. They are also
collaborating closely with OEMs, manufacturers and leasing companies to
forecast demand and align railcar capacity with production cycles. “The
industry is fully aware that railcar availability and modernisation are
critical to sustaining the automotive sector’s growth,” De la Mora says.
The goal is to avoid the bottlenecks seen in 2023, when
shortages forced some automakers to move vehicles by trucks. Honda’s head of
export sales and CBU logistics in Mexico described that period as “a total
mess,” at the Automotive
Logistics 2024 Mexico conference, after losing thousands of rail spots
and turning to flatbeds for shipments. De la Mora says such disruptions should
become a thing of the past as new wagons and autoracks enter service.
Seamless cross-border integration
A defining strength of North American automotive
logistics is integration across borders, and Mexican rail is reinforcing this.
“The North American rail system is one of the most integrated in the world, and
Mexico is further strengthening that integration,” De la Mora says. The AMF is
working closely with government authorities to optimise cross-border
interoperability as well as harmonise safety regulations and custom standards with
rail networks in the US and Canada. Key initiatives include upgrading border
crossing infrastructure, expanding data-sharing between rail operators, and
enhancing intermodal terminals to streamline transfers between rail, road and
ports.
Critically, the AMF is coordinating with its US
counterpart, the Association of American Railroads (AAR), on regulatory
alignment, digital integration and joint infrastructure projects, “with the
goal of improving trilateral logistics performance across North America,” De la
Mora explains.
OEMs and carriers are already feeling the benefits
of improved cross-border rail links. Schneider National, for example, has expanded in
Mexico and is partnering with CPKC to handle rising US-Mexico
intermodal demand tied to localisation. At Automotive Logistics’
September flagship event in Detroit, speakers noted rail is playing a
significantly larger role in cross-border shipments, with Nissan’s
director of finished vehicle logistics indicating that earlier rail supply
issues into Mexico had been resolved, even as interoperability
within Mexico continues to need work.
On the rail side, CPKC’s
Wylie (Dallas) vehicle compound – part of a $275m Chicago-Laredo
corridor upgrade – supports a closed-loop Canada-US-Mexico service aimed at
shifting more finished vehicles from road to rail. And with the new
CPKC-CSX corridor linking Mexico, Texas and southeast US,
stakeholders expect faster transits and added capacity to key OEM hubs.
These developments reinforce De la Mora’s point
that intermodal strategies and data-driven collaboration are now essential.
Rail’s integration of “digitalisation, predictive analytics and multimodal
connectivity [will] strengthen resilience across the entire automotive
ecosystem,” De la Mora says.
Security, reliability and resilience
Security of high-value automotive freight remains a
top concern, one that rail, paradoxically, can help mitigate when managed
effectively. De la Mora says the industry has rolled out integrated
security programmes along key corridors “that combine technology, coordination
with authorities and operational discipline.” This includes real-time GPS
tracking, surveillance systems and data analytics to detect and prevent theft
or vandalism, backed by coordination with local authorities and the Rail
Transport Regulatory Agency (ARTF) through the AMF to protect trains and yards.
The AMF also promotes predictive monitoring and information-sharing between
carriers and customers to turn vulnerability into visibility.
The focus on security also reflects lessons from the past. A
2017 Automotive Logistics report warned that Mexico’s growing rail
volumes had left shipments “at disadvantage” because of equipment shortages and
risks of “theft, vandalism and drug smuggling.” With components and finished
vehicles among some of the country’s highest-value cargo, such threats once
undermined just-in-time supply chains. Today, executives expressed that conditions
have improved, with OEMs such as Honda and Nissan in North America once
again moving their exports by rail.
Driving greener, smarter logistics
Sustainability is another advantage of rail. “Rail is, by
nature, the most efficient and sustainable mode of land transportation,” De la
Mora says, noting that trains emit far less CO₂ and pollutants per
ton-kilometre than road freight, and as such “positions the rail sector as a
key contributor to Mexico’s and North America’s sustainability goals.”
“To maximise its environmental and operational potential, we
are encouraging more products and more users to shift to rail, leveraging its
capacity for long-haul freight while relying on road transport for first and
last-mile delivery,” she adds.
Through AMF, the sector is also promoting intermodal
transport as a strategic complement to rail operations – a policy-driven effort
to align logistics efficiency with Mexico’s sustainability goals.
OEMs are also showing interest in these
efforts. VW
Group Logistics’ former head of transport networks noted during a Red Sofa
interview that the company is using rail and digital twins to boost
sustainable operations in US and Mexico.
A modern rail future
De la Mora’s vision of a modern, connected rail network is taking
shape. “This intermodal approach strengthens supply chain efficiency, reduces
emissions and aligns the logistics sector with broader climate and
sustainability goals set by both government and industry.”
However, challenges remain. As rail capacity expands and
freight volumes continue to climb, collaboration will be key. OEMs must work
closely with suppliers to plan shipments and invest in rail-ready packaging and
terminals, while policymakers must keep supporting corridor and security
upgrades. De la Mora believes that, if aligned, these efforts will allow
Mexico’s railways to anchor a more resilient and efficient cross-border
automotive network – one sustained by close cooperation among industry,
government and logistics partners, and positioned as a strategic pillar of
North American competitiveness.
